The decentralized trading platform HyperLiquid faces renewed scrutiny following a market manipulation incident that has exposed vulnerabilities in its system and triggered concerns about security protocols. The latest episode involves a rapid surge in the price of $JELLY tokens, leading to significant losses and raising questions about HyperLiquid’s ability to prevent and respond to such events. blockchain analytics firm Arkham Intelligence revealed details of the manipulation scheme, stating that an unknown address exploited the platform’s system vulnerabilities to artificially inflate $JELLY’s price by over 230%. This resulted in unrealized losses for the platform’s treasury and raised concerns about market manipulation.